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How regressive is Colorado’s tax system

Colorado has essentially a flat income tax, though just over a generation ago, it had a progressive tax system designed in part by sainted CU economic professor Rueben Zubrow.

Now, the combined impact of Colorado’s state and local tax system is highly regressive.

According to figures from the Colorado Fiscal Institute, families making under $10,000 yearly pay more than twice the relative tax of families making over $100,000.

The effective combined state and local tax rate in 2010 for households earning less than $10,000 in Colorado was 13 percent. The effective rate for households with income greater than $100,000 was 5.7 percent.